Artificial intelligence in customer service: Opportunities and challenges for SMEs

The use of artificial intelligence (AI) is transforming customer service in a sustainable way by: Efficiency gains and the Customer experience improved. In particular for small and medium-sized enterprises (SMEs), AI has the potential to automate processes while enabling personalised customer interactions. Businesses can not only reduce costs but also increase their competitiveness. 

 

The main benefits of using AI in customer service 

Automation and efficiency:

AI can automate default tasks such as replying to frequent customer requests or processing support tickets. Through the use of Chatbots and virtual assistants companies can respond to customer requests on a 24/7 basis without having to rely on human resources. This results in shorter waiting times and a faster processing, which in turn increases customer satisfaction.

 

 

Personalised customer interaction:

AI algorithms analyse customers’ behaviour and preferences to offer tailor-made solutions or recommendations. Personalised interactions strengthens not only the Retention and the Customer confidence, “but also increase the likelihood of a sale or a positive customer experience.

 

Application examples 

Automated processing of requests:  

By using AI-driven chatbots, companies can handle simple customer requests such as order status, return requests or FAQs more efficiently. This relieves human staff who can focus on more complex requests. In the case of a typical SME, this may lead to a Reduction of requests; which can be resolved without human intervention; around up to 60 % flush mounted box. 

 

Personalised product recommendations:  

Through machine learning algorithms, AI can analyse customers’ purchasing behaviour and past interactions to provide personalised recommendations. This gives customers tailor-made proposals, leading to a higher conversion rate and the better shopping experience lead. This type of personalisation increases not only turnover but also customer loyalty.

 

Challenges in the use of AI  

High initial investment:  

Building and integrating AI systems into existing processes requires investment in technology and training. SMEs in particular must: Carefully weigh the cost factor, before they implement AI.  

  

Integration into existing systems:  

The introduction of AI technology can pose technical and organisational challenges. Existing systems need to be adapted and require human-machine interaction clear process definitions.  

 

Loss of human contact:

A frequent concern about the use of AI in customer service is the possible loss of personal contact. Customers may feel that they are no longer individually cared for if the interaction is fully automated. It is important to strike a balance between: Automation and human care below. 

 

 

Identify potentials in your own company 

To unlock the full potential of AI in customer service, companies should first analyse their processes. The following steps can help:  

 

Identify routine tasks:
Consider which tasks in customer service are recurrent and time-consuming. Tasks such as replying to standard requests or managing support tickets are particularly well suited to automation by AI.

 

Analysis of personalisation requirements:
Consider whether and how personalised customer interactions could affect your business. If your clients benefit from personalised recommendations, the use of AI can make a difference.

 

Gradual implementation:
Start with small pilot projects to test how AI works in your service processes. This will minimise risks and gradually integrate other functions. 

 

 

We are here for you! 

If you are also interested in the digital transformation of your company and are interested in entering Industry 4.0 for your company, we, EDIH Saarland, are at your disposal at any time. On our portal, we offer you: extensive services (such as individual Feasibility Studies, Business Process Evaluations, but also prototyping). Please do not hesitate to contact us via: info@edih-saarland.de, under +49 (0) 681 85787 – 300 or via the button below, and still today agree on a free speaking time, to: Answers to your questions on the topic of digitalisation and Industry 4.0.